ContractMerger Agreement • June 16th, 2004 • Mandalay Resort Group • Services-miscellaneous amusement & recreation
LAS VEGAS, JUNE 16, 2004 – MGM MIRAGE (NYSE: MGG) and Mandalay Resort Group (NYSE: MBG) today jointly announced that they have entered into a definitive merger agreement under which MGM MIRAGE will acquire Mandalay for $71.00 per share in cash, a premium of approximately 30% to Mandalay’s closing share price on the day before MGM MIRAGE made its initial offer. The total value of the acquisition is approximately $7.9 billion, including equity value of approximately $4.8 billion, $600 million of convertible debentures and the assumption of approximately $2.5 billion in outstanding Mandalay debt.
